Prince George’s Council Ponders Tax and Fee Increases
Now is the time to share concerns with the Prince George’s County Council regarding proposed tax and fee increases in the FY 2016 County budget. Items that will impact AOBA members include:
· A 15 cent increase in the real property tax rate
· A 38 cent increase in the personal property tax rate
· A $25 increase per unit in the two-year rental licensing fee
AOBA staff offered testimony to the Council at a public hearing on April 28 raising concerns about the impact of the tax and fee increases. Cumulatively, the proposed real property tax increases would annually cost apartment owners $9,557,000 and commercial property owners $13.8 million. The increase in the rental licensing fee would annually raise charges by $900,000. The proposed real property tax rate of $1.11 would be the third highest county tax rate in Maryland and the second highest in the Washington metropolitan area for multifamily property, behind only Loudoun County, Virginia.
We estimate that on average, the rent for every multifamily rental unit would have to annually increase by $145 to recover these costs. This would make our properties less competitive and less affordable for our residents.
AOBA members are urged calculate the impact of the proposed tax and fee increases on your properties and state your concerns to members of the Prince George's County Council . The Council will conduct budget hearings during May, with final budget approval scheduled for May 28.